, while the most able managers obtain a wage increase, less able managers are faced with a reduction in wages. Hence our model …

We study the role of transparency in a novel three-person profit sharing game in which managers and board directors … hypothesis, but reject the second one: Public transparency actually increases managerial wages as well as board director … compensation, further reducing the revenue share that goes to shareholders. Competition to keep managers further magnifies these …

Recent laboratory evidence suggests that employees who have the extraordinary right to self-determine their wages … right, while being paid the same wages as the first group. We find that performance is about 12% higher when employees self …-determine their wage, whereas self-determined wages are about 20% higher . A last treatment group differed from the former only in …